Amazon Can't Dent iTunes

On the day Apple Inc. rolled out the Beatles’ catalog on its iTunes Store, Amazon.com Inc. fired back with a digital exclusive of its own: The latest album from rap-rocker Kid Rock–whose music still isn’t available on iTunes–for just $3.99.

Such steep discounts are a cornerstone of Amazon’s strategy to gain traction in a market in which iTunes remains the dominant player. At the same time, a debate has arisen among music labels about whether such discounts risk undermining the value of their products.

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